How much would a small business spend for software that would do the meticulous calculation for the sales tax amount and supply remittance addresses for every taxing entity in jurisdictions in which they make internet sales? My guess would be thousands, if they could hike the price of the product they sell to pay for this additional expense.
In deciding in favor of tax collectors in South Dakota v. Wayfair, Inc., Justice Kennedy didn't need to bring up the Keynesian Broken Window Fallacy as he had tax revenue in mind -- it's not just for the common good, it's for fairness!
But that famous Broken Window Fallacy has some application. All that money spent by customers on taxes and by vendors on the collection process is money that could have been used elsewhere.
We don't need taxing entities to decide how best to use our money. Out here in the Permian Basin tax collectors are awash in sales tax revenue already. The dilemma they see is how to spend all that money. Nowhere is there a serious consideration of the concept of giving it back to the people.
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12:50 PM 6/23/2018
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